The Affordable Care Act (ACA) Information Return (AIR) program is crucial for transmitters and issuers for reporting under the ACA. This article outlines essential updates for the AIR system, focusing on tax year 2024 and processing year 2025, ensuring compliance and smooth operation for all stakeholders involved in the Affordable Care Act information return process.
Key Updates for Tax Year 2024 and Processing Year 2025
To ensure a seamless Affordable Care Act information return submission process, several key updates have been implemented within the AIR system for the upcoming tax year and processing year. These updates primarily affect software developers, transmitters, and issuers who utilize the AIR program.
Transmitter Control Codes (TCCs) and Testing
For transmitters and issuers already in production status, there is no need for additional testing for tax year 2024. Your existing AIR Transmitter Control Codes (TCCs) will remain active in the production environment. This streamlines the process for established users, reducing the burden of repeated testing.
Software Developer Requirements
Software developers play a vital role in the ACA information return AIR program. It is essential that software developers update their ACA application for Transmitter Control Code (TCC) each year. This annual update is necessary to obtain a new software identification number specifically for the new tax year. This ensures that the software used is up-to-date with the latest requirements and security protocols for the Affordable Care Act information return system.
Developers who have successfully passed testing for any tax year ending after December 31, 2014, are not required to undergo testing again for the current tax year. Software IDs are typically scheduled to move to the production environment within one week from the date of assignment, facilitating a quick transition to live operations.
When the 2024 software packages are integrated, responsible officials will be prompted to re-sign the ACA application for TCC. This re-signing is a mandatory step to confirm acceptance of the updated terms and conditions and to maintain compliance within the Affordable Care Act Information Return Air Program. It is important to note that AIR transmissions, whether live or test, will be rejected if the ACA application for TCC is not signed and in a completed status. Therefore, ensure this step is completed promptly to avoid any disruptions in your Affordable Care Act information return submissions. Allow a 48-hour window after passing any required testing before transmitting to the production system.
AATS and Production Environments: Processing Year 2025/Tax Year 2024
The AIR system will accommodate submissions for tax years 2015 through 2024 during processing year 2025. This broad acceptance window ensures that organizations can submit both current and prior year Affordable Care Act information returns through the AIR program.
Programming for processing year 2025 in the AATS (Affordable Care Act Assurance Testing System) environment commenced on November 1, 2024. In the production environment, processing year 2025 programming began on January 13, 2025.
Schema Package Usage
For all submissions, it’s critical to use the correct schema packages. All manifest files, for both current and prior tax years, must utilize the TY2024 schema package during processing year 2025. Similarly, all form data files for tax year 2024 must also use the TY2024 schema package to generate Forms 1094/1095-B or Forms 1094/1095-C. Using the correct schema package is essential for successful Affordable Care Act information return processing through the AIR system.
For prior year returns (tax years 2015-2023), the latest schema package for that specific tax year should be used for the form data file. For example, when submitting returns for tax year 2021, you should use the latest TY2021 schema package to generate Forms 1094/1095-B or Forms 1094/1095-C form data files. Ensure the “PaymentYr” value is set to “2021” and the “PriorYearDataInd” value is set to “1”. The Software ID for 2021 (which begins with 21XXXXXXXX) should also be correctly implemented.
Conclusion
Staying informed and compliant with the Affordable Care Act information return AIR program updates is essential for all involved parties. By understanding these key changes for tax year 2024 and processing year 2025, transmitters, issuers, and software developers can ensure accurate and timely submissions, avoiding potential issues and maintaining adherence to ACA regulations. Regularly reviewing updates and guidelines from the IRS is recommended to remain compliant with the Affordable Care Act information return requirements.
